Opendoor Q3 2026: Big Miss as Inventory Swells to $2.57 Billion

Opendoor posted a GAAP loss of $0.23 per share in the third quarter of 2026, missing expectations of $0.05 per share. Revenue came in at $1.02 billion, up 11.7% year over year but short of the $1.07 billion analysts had expected, unsettling investors who had positioned bullishly ahead of the earnings report.

Two one-time charges drove much of the GAAP damage: a $96 million stock-based compensation expense tied to market-condition RSUs and a $53 million inventory valuation adjustment on homes still held. Those charges pulled gross margin down to 3.7% from 7.2% a year earlier, with net loss reaching $218 million for the quarter.

The deeper concern is the mismatch between buying and selling. Opendoor purchased 4,865 homes in the quarter, up roughly fourfold from 1,169 in Q3 2025, but sold only 2,728, leaving inventory swollen to $2.57 billion. The share of homes listed for more than 120 days rose to 18% from 9% the prior quarter, a sign that resale demand is not keeping pace with the company's aggressive acquisition push.

Management acknowledged it is behind its goal of reaching Adjusted Net Income positive by year-end, citing a slower housing market. CEO Kaz Nejatian struck an optimistic tone on acquisition efficiency, noting that trailing-twelve-month marketing expense per acquired home fell 57% and operations expense per acquired home fell 36%. He also pointed to mortgage originations growing more than 400% quarter over quarter as an early signal on the buyer side.

For the fourth quarter of 2026, Opendoor guided to revenue growth of at least 40% year over year, but also projected an Adjusted EBITDA loss of $70 million to $85 million and an additional roughly $90 million in stock-based compensation. Management cautioned that a sequential decline in Contribution Profit dollars is expected as the company focuses on moving homes through a difficult market, keeping near-term financials under pressure even as top-line growth accelerates.